The rupee gained further ground in relation to the dollar on Saturday in process of trading activity, dealers said. The rupee rose by 10 paisas in terms of the dollar for buying at Rs 138.60 and it also picked up 20 paisas for selling at Rs 139.00, they said. The rupee, however, lost 70 paisas against the euro for buying and selling at Rs 157.30 and Rs 158.50, they said.
"While the Fed next week may not sound overtly dovish, its tone might emphasize caution and thus do little to alter very low expectations for policymakers to raise rates this year," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.
The Fed raised interest rates four times last year and has signalled it will probably lift borrowing costs twice in 2019, though some central bank officials have said they will be patient in raising rates.
In mid-morning trading, the dollar index was down 0.6 percent at 96.046, after climbing to a three-week high of 96.676 on Thursday.
The dollar's decline also coincided with a rally in US stocks, which were bolstered by upbeat earnings.
The euro, on the other hand, rebounded on Friday, steadying after a dovish European Central Bank President Mario Draghi failed to alter an already downbeat assessment on the euro zone's economy.

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Open Bid       Rs.138.60
Open Offer     Rs.139.00
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